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Specialty Chemicals News Roundup: July 8-July 14
4:07 AM MDT | July 14, 2011 | By KERRI WALSH
The latest deal to be announced in the specialty chemical arena is Lonza's offer to acquire biocides maker Arch Chemicals (Norwalk, CT) in a deal valued at $1.4 billion. Lonza will launch a tender offer for all of Arch’s outstanding shares for $47.20/share in cash. Lonza’s offer represents a 12% premium to Arch's previous closing price on July 8, and a 36.7% premium to its average closing price over the last 30 trading days. Arch had 2010 sales of about $1.4 billion, of which about $1.2 billion were from biocides. Lonza claims it will have the world’s largest biocides business after the deal closes, surpassing Dow Chemical, which became number one when it acquired Rohm and Haas.
Specialty chemical maker MacDermid, seeking a return to public markets, has filed with U.S. regulators to raise $200 million from an initial public offering (IPO). The size of the stake and timing of the IPO has not been determined yet. MacDermid was taken private in April 2007 by Court Square Capital Partners (New York) and Weston Presidio (Boston) as part of a $1-billion leveraged buyout led by chairman and CEO Daniel Leever. MacDermid had net of $694.3 million in 2010 with net income of $24.3 million. The company’s primary product lines are coatings used in metal and plastic finishing, wet chemistry and imaging products for printed circuit boards, offshore drilling fluids, and photopolymer products for printing applications.
DSM says it has completed the previously announced acquisition of a 51% stake in AGI Corp. (Taipei) through a subscription for newly to be issued shares combined with a public tender offer for about €41 million ($57.5 million) in total. AGI offers a range of environmentally friendly ultraviolet (UV) curable resins and other products. DSM had first announced plans to acquire the controlling stake in AGI in December 2010. AGI’s products are used in coatings and inks for wood, flooring, plastic and graphic arts applications. AGI reported net sales of about €97 million in 2010.
Electronics chemicals firms are operating in growing, but rapidly changing, end markets, say attendees at Semicon West 2011, held this week in San Francisco. Semi, the industry trade group, says that the wafer processing space, a key market for electronic chemicals firms, will post its highest sales figure ever this year. Executives in the industry are eager to capitalize on the growth potential of new markets such as mobile computing devices, solar and light-emitting diodes (LEDs), but realistic about the many challenges inherent in these sectors.
Elevance Renewable Sciences (Bolingbrook, IL) says it has entered into an agreement to jointly develop biobased plastics additives with Clariant. The two companies will leverage Clariant’s plastic additives market and formulation expertise and Elevance’s process technology.